Bitcoin price has failed to maintain advance after putting in a strong surge two days ago. While this does not yet look like a return to decline, price may correct deeply before returning to the upside.
Time of analysis: 15h00 UTC
From the analysis pages of xbt.social, earlier today:
Our xbt.social Buy trade was closed at 00h00 UTC by price pulling below the 1-hour 20MA, by more than the designated distance for this trade.
This breach of the 1-hour 20MA tends to happen prior to a correction setting in – whether downward or sideways.
Price is currently pulling below the 20MA and the 20MA is pointing down. RSI (just above price) confirms the downward price correction and MACD (top) is pulling below its zero-line – additional bearish indications, both.
After a strong surge, the corrective move was heralded by the fact that we did not see a new high in the leading CNY charts during the past 2 days.
The sell signal that has formed (outlined at xbt.social) should now see price tend to its 200MA (dotted red), currently near $340. This level also overlaps with the established set of Fib lines below price.
As bitcoin speculators we live for the spectacular rallies that only bitcoin can show in its chart. Whenever a potential rally fails to make headway, the mood in forums and chatrooms quickly dampens. We should remind ourselves that the market psychology of speculation does not allow price to travel in uninterrupted waves to glorious profit. New waves of advance typically work through several smaller wave degrees before the real action starts near the price wave’s completion. For now, trade frugally and patiently. The large waves are in the pipeline.
What do readers think? Please comment below.
Readers can follow Bitcoin price analysis updates every day on CCN.LA. A Global Economic Outlook report is published every Monday.
The writer trades Bitcoin. Trade and Investment is risky. CCN.LA accepts no liability for losses incurred as a result of anything written in this Bitcoin price analysis report.
Bitcoin price charts from TradingView.
Image from Shutterstock.